Some Specifics on Pelosicare

[ColonialMarine0431]

Compliments of Americans For Tax Reform....

H.R. 3962, the "Affordable Health Care for America Act" has been introduced--all 1990 pages of it. This gargantuan beast contains thirteen new tax hikes. Here they all are, with description and page number (PDF version):
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Employer Mandate Excise Tax (Page 275): If an employer does not pay 72.5 percent of a single employee’s health premium (65 percent of a family employee), the employer must pay an excise tax equal to 8 percent of average wages. Small employers (measured by payroll size) have smaller payroll tax rates of 0 percent (<$500,000), 2 percent ($500,000-$585,000), 4 percent ($585,000-$670,000), and 6 percent ($670,000-$750,000).

Individual Mandate Surtax (Page 296): If an individual fails to obtain qualifying coverage, he must pay an income surtax equal to the lesser of 2.5 percent of modified adjusted gross income (MAGI) or the average premium. MAGI adds back in the foreign earned income exclusion and municipal bond interest.

Medicine Cabinet Tax (Page 324): Non-prescription medications would no longer be able to be purchased from health savings accounts (HSAs), flexible spending accounts (FSAs), or health reimbursement arrangements (HRAs). Insulin excepted.

Cap on FSAs (Page 325): FSAs would face an annual cap of $2500 (currently uncapped).

Increased Additional Tax on Non-Qualified HSA Distributions (Page 326): Non-qualified distributions from HSAs would face an additional tax of 20 percent (current law is 10 percent). This disadvantages HSAs relative to other tax-free accounts (e.g. IRAs, 401(k)s, 529 plans, etc.)

Denial of Tax Deduction for Employer Health Plans Coordinating with Medicare Part D (Page 327): This would further erode private sector participation in delivery of Medicare services.

Surtax on Individuals and Small Businesses (Page 336): Imposes an income surtax of 5.4 percent on MAGI over $500,000 ($1 million married filing jointly). MAGI adds back in the itemized deduction for margin loan interest. This would raise the top marginal tax rate in 2011 from 39.6 percent under current law to 45 percent—a new effective top rate.

Excise Tax on Medical Devices (Page 339): Imposes a new excise tax on medical device manufacturers equal to 2.5 percent of the wholesale price. It excludes retail sales and unspecified medical devices sold to the general public.

Corporate 1099-MISC Information Reporting (Page 344): Requires that 1099-MISC forms be issued to corporations as well as persons for trade or business payments. Current law limits to just persons for small business compliance complexity reasons. Also expands reporting to exchanges of property.

Delay in Worldwide Allocation of Interest (Page 345): Delays for nine years the worldwide allocation of interest, a corporate tax relief provision from the American Jobs Creation Act

Limitation on Tax Treaty Benefits for Certain Payments (Page 346): Increases taxes on U.S. employers with overseas operations looking to avoid double taxation of earnings.

Codification of the “Economic Substance Doctrine” (Page 349): Empowers the IRS to disallow a perfectly legal tax deduction or other tax relief merely because the IRS deems that the motive of the taxpayer was not primarily business-related.

Application of “More Likely Than Not” Rule (Page 357): Publicly-traded partnerships and corporations with annual gross receipts in excess of $100 million have raised standards on penalties. If there is a tax underpayment by these taxpayers, they must be able to prove that the estimated tax paid would have more likely than not been sufficient to cover final tax liability.

SOURCE

[bkg]

holy shit...

companies will be leaving this country in droves to escape these taxes... and the economy will fail.

[DixieBelle]

Holy crap, we are well and truly screwn.

Love this comment from the link though...

"under capitalism, if you don't work you don't eat; under socialism, if you don't obey you don't eat."

[NHSparky]

Now you know why they released it on a Friday--news cycle won't catch up until the vote at the very least.

[ColonialMarine0431]

Now you know why they released it on a Friday--news cycle won't catch up until the vote at the very least.

EXACTLY!

[Carl]

Employer Mandate Excise Tax (Page 275): If an employer does not pay 72.5 percent of a single employee’s health premium (65 percent of a family employee), the employer must pay an excise tax equal to 8 percent of average wages. Small employers (measured by payroll size) have smaller payroll tax rates of 0 percent (<$500,000), 2 percent ($500,000-$585,000), 4 percent ($585,000-$670,000), and 6 percent ($670,000-$750,000).

Individual Mandate Surtax (Page 296): If an individual fails to obtain qualifying coverage, he must pay an income surtax equal to the lesser of 2.5 percent of modified adjusted gross income (MAGI) or the average premium. MAGI adds back in the foreign earned income exclusion and municipal bond interest.

While the small businesses may be exempt imagine the millions of employees who work for them at decent wages being caught up in this trap.
The impact will be devastating

[Carl]

It should also be noted that while those payroll figures sound high they really aren`t.
If you have 10 employees that get paid 35,000/year the cost of payroll taking into account the employer SS share of 7% plus unemployment and workers comp will be nearly double that amount placing them in the 6% range.

[bkg]

My Rep, Michelle Bachmann, is on Hannity. She kicks ass. She's asking people to travel to DC for Thursday at 12PM to protest.

BTW - page 92/3 of the bill bans private health insurance.

Per her, Abortion in the bill.

And...

She dared call the bill unconstitutional! 

[NHSparky]

Problem is, they'll be taxing us on it for three years before anyone sees any benefit, and if the SCOTUS has a set of balls among them and declares the whole thing unconstitutional, does anyone here REALLY think you'll see your money back for a plan you'll never see?

[bkg]

Page 15xx - something - regulates vending machines per Glenn Beck. 

[Anomalous]

I spent nearly 8 hours speed-reading and trying to notate the critical sections of this incredibly-liberal health care reform bill.  I know it’s not final, but I felt that my readers needed to know what this thing was.  The high-points are  that there are:

    * 5 new taxes that total up to a %18.4 reduction of income for Americans.  I can’t even calculate the annual fee on insurance in Section 4375 because they didn’t define it
    * 31 new Federal programs and bureaucracies each with incomprehensible allocations from public funds
    * Specifically prohibits states from enacting tort reform by holding back Federal dollars if they enact medical liability limits
    * Serious increase in the amount of people covered by Medicare without any new funding to cover (hello state and sales tax increases)
    * the bill will pay for abortions
    * Regulates the spending of private insurers but allows the government to spend whatever it wants
    * Has a government-run public option paid for by the multitude of taxes listed above
    * Only limits yearly out-of-pocket maximums to $10,000 for families.   This is higher than most average private insurance plans
    * Creates a $5 Billion pool to pay government option claims from your taxes…
    * Gives Power to the Secretary of Health and Human Services to enact waiting lists when government expenses get too high
    * Eliminates new enrollment in current private insurance options after the bill is enacted into law
    * Takes away the right of citizens to spend their own money on non-prescription drugs tax-free
    * Prevents Americans from saving for their own health care emergencies by capping FSAs at $2500/yr
    * Cuts Medicare by ~$500 Billion ($150 Billion+ of Medicare advantage cuts)
    * Prevents expansion of medicare advantage programs
    * Makes it easier to defraud Medicare
    * Forces more people onto State Medicaid programs while reducing funding under the Medicare DSH program

There is much more including a look at what deficit-neutral really means to us. 

After reading it, I took the time to do a side-by-side comparison of this bill with the Senate bill and the only GOP bill I could find.

If you have read the bills and have some further insight, please let me know.

[nakedliberty]

Just proves that fixing health care is at most a secondary goal.  Its all about social engineering and control.  Not exactly a surprise, however.